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Re-decide on compensation under insurance policy, NCDRC gets 'supreme' guidance in this matter
Supreme Court: The Supreme Court on Monday directed the NCDRC to reconsider the amount of compensation under the insurance policy for the loss suffered by a company in 2005. The company had sought compensation from the insurance firm for the loss caused by the collapse of the factory shed.
The Supreme Court on Monday provided a key guideline to the National Consumer Disputes Redressal Commission (NCDRC). Through this, the bench of Justice Sanjay Kumar and Justice Augustine George Masih instructed the NCDRC to revisit the compensation amount under the insurance policy for the loss incurred by a company in 2005. This was done during the hearing of the appeal filed by the insurance company challenging the ruling provided by the NCDRC in August 2022.
The NCDRC had previously opined that the company must be compensated by the insurance firm since the company had incurred losses by the collapse of the factory shed. The bench on this stated that the company had acquired comprehensive coverage against fire as well as special perils from the insurance company. The coverage was valid from 30 June 2005 to 29 June 2006.
This case was related to the loss of a company, which was affected due to the collapse of its factory shed due to heavy rains in 2005. The company had sought compensation of Rs 91 lakh from the insurance company. After this, the insurance company appointed a surveyor, who assessed the loss to be only Rs 8.89 lakh and claimed that this loss was not due to flooding, so it was not covered under the policy.
